S’pore, Asean on risky list

CrossBorder Capital said its Emerging Markets Risk Index fell sharply in May and is now at its lowest level since 2012, having peaked in early 2015.

This measure is based on three components: financing risk, which measures the ability of EM entities to roll over their debt; forex risk, driven by the quality of liquidity in a country and how dependent it is on central bank money; and exposure risk, which flashes a warning sign if a high proportion of investment in a country is in risk assets such as equities and corporate debt, rather than lower-risk government bonds and cash.